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vadonna | How much monthly income do you have to make to try to get a home loan on a 485000. home? |
i noticed a forclosure in my area and called on it they said 485000.dolars , i said thanks and hung up discouraged ,and i got to wondering ,what the calculations on that amount would be ,concitering the current interest rate and all else.
any one know? |
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Rush is a band
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I am personally much more conservative than 'markmywords' or Biggie is with respect to income vs. payments for mortgages. Whereas you might be able to get that loan on their income figures, you couldn't 'afford' the home with those incomes. You'd be house poor.
So, $485,000 is over the magic number of $417,000 which was the limit for conforming loans. Unless in certain markets, this places the loan into jumbo category which increases the interest rate. Assuming awesome credit and low debt, I'd guess that a 30 year fixed rate, $461,000 home loan (assume 5% down) would have an interest rate of ~7.25% would cost $3145 per month for principal and interest.
I thought someone else's assessment of real estate taxes and insurance were way to low. Real estate taxes probably average around 1.5% of value per year (I've seen anywhere from 0.5% to 4%) and that would add $607 per month for taxes. Insurance on a home that expensive would probably easily run $100 per month. Add-in $200 a month for the PMI (jumbo loan with only 5% down) and we're talking a total payment of $4052!
Some banks might let you use crazy debt to income ratios (like 40% or 50%), but banks (a long time ago) used to use a 28/36 rule. No more than 28% of gross income for a housing payment and no more than 36% of gross income for all debt payments. Using the 28% for the housing payment and I'd want my income to be $14,470 per month (almost $175,000 per year) to buy that house! That's a lot higher than the others reported, isn't it?
A general rule of thumb is that a mortgage should be 2x to 3x your annual salary. Again this works out to someone needing an annual salary of at least $161,000 to afford this.
good luck! |
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sarge927
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Biggie is dead-on target. A general rule of thumb for how much home you may be able to afford (and I stress the word MAY) is to divide the cost of the house by 3.5. If your annual income is over that amount, you may be able to afford it. A lot depends on how much you give as a down payment. If you don't put down at least 20% you usually have to have mortgage insurance, and many lenders are reluctant to even go that route for homes that cost more than $300,000.00. The rest depends on your credit history. If you have good credit, you can qualify for a loan at a lower APR. |
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Biggie @ Arbor Mortgage
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Generally to qualify for a home loan, you can afford a house payment including taxes & insurance, of 31% of your gross monthly income. |
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Doctor Deth
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160-200k a year income |
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markmyword
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Making a few assumptions, a rough number would be around $106,000. However, you have to take into account how much you have in monthly debt payments which I have not taken into account.
When you take all of you monthly debt payments plus the total montly cost of the mortgage you want to be around 43%. A rough estimate of your mortgage, MI, homeowners insurance and taxes (the tax figure I'm using could be high or low depending on where you live) is $3800. NOBODY lends at a 60% dti anymore. Maybe 50% but more likely 43-47%.
To get a real estimate of how much house you can afford I'd need to see all of your debt payments, income, and the taxes for the property.
Email me if I can provide you additional information. |
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The Napster
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Lending requirements have stiffened lately. It's all about the debt service to income ratio. So lets say you get the 485k home at a loan of 6.25% for 30 years. Your payment would be around $2,970.75 for principal and interest. Include about $300 a month for taxes and insurance your payment would be $3,270. Some lenders are looking for a 40% debt to income. So you would need an income of $8,175 a month. You may find a lender that would allow a 60% debt to income so your income would need to be $5450 a month. so you need to be making more than $5,500 a month to get the home |
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Lupita
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Biggie is correct. A lender, bank or mortgage company for calculate a debt to income (DTI) ratio to determine how much you make with regards to how much you pay out. Even if you make lots of cash, if you are deeply indebted your loan approval would be affected. There is no simple answer to your question because you and someone who make the exact same salary will qualify for grossly different amounts based on income, debt, timely payments and credit history, etc. |
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